I am proposing to a wealthy new non-profit research institute that I
start an 8-page quarterly newsletter for them, including editing or
writing all text and managing an art director (who will, in turn,
manage print production).  The institute will supply the basic
information by way of offering their researchers for interviews, etc. 
The institute wants to reach about 1,000 influential scientists.  What
should I charge for my contract as the publisher/editor/writer
(excluding all art direction and production costs)?  I need other
examples where people have charged similar rates for such a project,
or general guidelines that would help me to establish a fair price.

Hi mrboston:

Thanks for the interesting question! For three years I performed
similar tasks for a technical newsletter, so I'm familiar with your
situation. I also realize how individual each such job is and how the
amount of work/skill required for one newsletter can vary greatly from
that of another.

To start, I was able to find some very good guidelines at: 

Freelancers.com
http://www.freelancers.com/index.html

where they suggest that for newsletters you charge:

* Writing: $150 to $500 per page
* Layout and production (First issue including masthead & template):
$1500 to $10,000
* Subsequent issues from template 2/3 original price or production
costs.
From: http://www.freelancers.com/webaffil/priceguide.html

Since you'll be doing the writing based on material the client
provides, the editing fees should probably be covered in the writing
costs.

Given the information that you've provided about your particular
proposal, I think it would be fair to charge in the lower/middle of
the above ranges. So I would suggest the following:

* First issue (writing plus creation of masthead and layout for future
issues): (8 pages * $250) + $2500 = $4500
* Subsequent Issues: $3000/issue

These costs, as you point out, should be exclusive of art direction
and production costs.

The reality of the situation is that you'll have to play the
negotiations by ear. If the research institute is very keen on the
idea of a quarterly newsletter, then you might be able to successfully
propose the full costs above right away (especially if you can show
them examples of prior similar work done by you). If you feel that
they are likely to be hesitant, you might wish to lower your price for
the first issue (including masthead and layout work) in order to
entice them into a longer-term agreement.

Without being in your shoes, it is difficult to find examples that
closely match what you are proposing. However, if you would like I can
research for you some freelancing origanizations that you could join
or books you could purchase to find more information on possible
pricing schemes. Just let me know using the Clarification feature if
you require more information along these lines.

Thanks and good luck!

websearcher-ga 


Search Strategy: 

* personal experience + 

"pricing guidelines" newsletters
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=%22pricing+guidelines%22+newsletters

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Request for Answer Clarification by mrboston-ga on 08 Dec 2002 06:16 PST

Your answer is a bit distressing, although it might be accurate.  I
was viewing my role as a consultant who is conceiving and managing a
PR function, charging rates closer to what a small PR firm charges
rather than what a freelance writer would charge.  In this field even
a freelance writer charges $1 minimum per word and up to $1.50 or
more.  My work would entail managing the whole process, including
working with the art director to choose and develop scientific
illustrations.

In light of this additional information, does this change your answer
to my question?

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Clarification of Answer by websearcher-ga on 08 Dec 2002 10:25 PST

Hi mrboston:

Thanks for the clarification request. Given that you were viewing this
task as more of a PR-based one than a strictly writing/editing one, I
can understand why you might be distressed at my original estimates.

One way you could look at (and sell) this project is to move more
towards the upper range of the ranges I provided above. For example:

* First issue (writing plus creation of masthead and layout for future
issues): (8 pages * $400) + $60000 = $9200
* Subsequent Issues: $6000/issue 

This leaning towards the upper range could be justified by pointing
out the "extra" PR work you'd be doing.
 
Or, alternatively, you might want to approach the pricing by
estimating the number of hours it will take and then multiplying by
standard PR consulting rates. I did some searching and found that the
typical consulting costs are between $80 and $200 per hour. I'd
suggest staying away from a per word payment basis. In my experience,
this rarely works out for either party in such a "large" project.

Since some of the tasks you'll be doing will be of "lesser" cost than
PR-work, I'd suggest something like $125/hour. So, if a newsletter
will take 50 hours, charge $6250.

Some of the sites that gave hourly rates are: 

Silicon Valley Public Relations
http://www.svpr.com/svhourly.html

Third Sector Innovations
http://www.gj.net/~thirdsec/pricing.htm


I hope this helps out. :-)

websearcher-ga

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Clarification of Answer by websearcher-ga on 08 Dec 2002 10:28 PST

Slight typo in the above formula. Should read:

* First issue (writing plus creation of masthead and layout for future
issues): (8 pages * $400) + $6000 = $9200 

websearcher-ga